Successful Digits (C06)

Digital augments or replaces physical activities over time in the provision of goods and services. It is a global phenomenon in progression at a high speed. We do not want to miss out. We need to understand at least the big picture and the groundwork for digitization if available. This article attempts to study a few cases showing how digitized businesses make sense. It is an easy read, and it may stir up a lot of discussions.

Internet platforms such as Amazon, Airbnb, Trade Me, and Seek have excelled. Cloud computing such as Xero has helped small businesses. Is Cloud Computing open to not-too-small businesses? What other digital means are good for businesses that are unsuitable to be an Internet platform? These questions are the challenges to be resolved. Frankly, we do need to adapt and evolve, or we will be scrapped under the carpet in the near future.

Compucon is in the 32nd year of operation as at 2023-07. It must adapt and evolve instead of asking “who moved the cheese”. The first step is to learn from successful businesses like those mentioned above and to consider extending the product or the market or both. Another major factor is to understand if the business deals with goods, or services, or a mix. The 3rd factor is to be clear if the business deals in B2B or B2C relationship. The 4th factor is to assess if the extension conflicts with the core business or if the extension opens a genuine business opportunity.

A bit more observation helps. A small restaurant in a yuppie pocket in central Auckland with about 15 small 4-seat tables has deployed a tabletop touchscreen for ordering drinks and food, and for checking out. The digitized service was very efficient. Drinks (including wines of course) were served almost instantly (cheers). Nicely prepared food was served in a few minutes. The entire dining time took less than 1 hour. Digitization allows the restaurant to have 3 rounds of customers per evening instead of two previously. This is a 50% increase in revenue. Labor costs may have dropped 20% at the same time. This is an example which juggles well-prepared food and limited table space effectively.

Whilst this restaurant example is successful, many 0800 call-centers are failures by making callers navigate through several cycles of enquiry type filtering and wait on the phone for >10 minutes before a real voice turns up. These digital assisted call-centers put customers off.

Compucon has been using the Internet for new PC system ordering and customer support almost since Day One in 1992. Unlike the restaurant example, ordering and customer service account for a small percentage of operation costs because making PC-to-order is a manual and complicated process not replaceable with digital means easily. To evolve, Compucon has to extend the scope of business into a market where digitalization matters. The latest decision was to extend into the building facility system market by applying digitization. Digitization needs to be supported by 4 pillars, namely, electrification, computing, connectivity, and autonomy of the system. Such automation can be applied to any not-too-small buildings and campuses for the security, safety, and economic operation of human occupants and physical properties.

Are the examples helpful to indicate where we can adapt and evolve as we go into the Digitization Era? Feel free to discuss.